Comparing CRSC and CRDP

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Combat-Related Special Compensation (CRSC) and Concurrent Retirement Disability Pay (CRDP) are programs created by Congress to allow eligible military retirees to receive monthly entitlements in addition to retired pay.

CRSC is a special compensation for combat-related disabilities. It is non-taxable, and retirees must apply to their Branch of Service to receive it.

CRDP is a restoration of retired pay for retirees with service-connected disabilities that was lost due to the VA compensation offset. This means that an eligible retiree's retired pay will be fully restored (phase in completed as of 2014). CRDP is taxed in the same manner as your retired pay, and it is normally considered taxable income. No application is required. Eligible retirees receive CRDP automatically.

Some Retirees may believe they are already receiving CRSC when they are actually receiving CRDP and may fail to submit their claim for CRSC. If you are not certain which you are receiving, please check your DFAS (or Coast Guard) pay stub and consider submitting your claim for CRSC. The following is a summary of the contrast between CRSC and CRDP:

Comparing CRSC and CRDP

It is important to note that Retirees cannot receive both CRSC and CRDP and must elect one each year through an annual "program election." Many retirees are confused about which is better for them. When making this decision, please note the following characteristics of CRSC and CRDP:

CRSC Eligibility

be rated at least 10 percent by the Department of Veteran’s Affairs (VA)

waive your VA pay from your retired pay

file a CRSC application with your Branch of Service

Disabilities that may be considered combat related include injuries incurred as a direct result of:

Armed Conflict

Hazardous Duty

An Instrumentality of War

Simulated War

If you have questions about your CRSC eligibility, please call us at 800-321-1080 or contact your Branch of Service.

CRDP Eligibility

You must be eligible for retired pay to qualify for CRDP. If you were placed on a disability retirement, but would be eligible for military retired pay in the absence of the disability, you may be entitled to receive CRDP.

Under these rules, you may be entitled to CRDP if…

you are a regular retiree with a VA disability rating of 50 percent or greater.

you are a reserve retiree with 20 qualifying years of service, who has a VA disability rating of 50 percent or greater and who has reached retirement age. (In most cases the retirement age for reservists is 60, but certain reserve retirees may be eligible before they turn 60. If you are a member of the Ready Reserve, your retirement age can be reduced below age 60 by three months for each 90 days of active service you have performed during a fiscal year.)

you are retired under Temporary Early Retirement Act (TERA) and have a VA disability rating of 50 percent or greater.

you are a disability retiree who earned entitlement to retired pay under any provision of law other than solely by disability, and you have a VA disability rating of 50 percent or greater. You might become eligible for CRDP at the time you would have become eligible for retired pay.

If you have any questions regarding your CRDP payment from DFAS, call 800-321-1080. For questions concerning disability ratings or disability compensation, please contact the VA at 800-827-1000.